Businessman's reputation, cash on line at NY trial

LARRY NEUMEISTER
Associated PressPublished: April 27, 2014 10:46AM

NEW YORK (AP) -- The Securities and Exchange Commission has told a New York jury that a onetime Texas billionaire earned over a half billion dollars by secretly trading securities in companies he created with his brother.

The showdown is an infrequent instance in which the SEC takes an enforcement action to trial. The SEC says Wyly and his now-deceased brother hid investment activities offshore for 13 years. The SEC says they used profits to buy homes and businesses for their family.

Wyly insists they acted lawfully. Their companies included a software maker that sold for $4 billion and an arts and crafts retail chain that sold for $6 billion.